Starbucks plans to close 250 stores in the US and Canada this week, representing a 1% reduction in its North America portfolio as part of CEO Brian Niccol's turnaround strategy. The company is simultaneously remodeling other locations and reported strong third-quarter same-store sales growth of 7.9%, exceeding Wall Street expectations.
Starbucks is closing approximately 250 locations in North America as part of CEO Brian Niccol's ongoing turnaround strategy, representing 1% of its roughly 18,000 North American stores. The company cited customer experience and financial viability concerns, with closures expected to cost about $300 million in charges. Despite the closures, Starbucks reported US same-store sales growth of 7.9% in its most recent quarter as part of its broader restructuring efforts.
Starbucks will close approximately 250 underperforming North American cafes, representing about 1% of its portfolio, as part of CEO Brian Niccol's turnaround strategy focused on improving customer experience. The closures, the second round under Niccol's tenure, will result in $300 million in restructuring charges, with most occurring before the end of fiscal 2026. The company is reducing its net new café openings projection to 440 for fiscal 2026, down from 600–650, while emphasizing long-term growth opportunities in North America and international markets.
Starbucks is closing its store at 1700 Seventh Avenue in downtown Seattle this weekend, continuing a pattern of more than a year of shutdowns in its hometown despite the location being busy and recently extended hours. The closure reflects ongoing tensions between the company and Seattle's Democratic leadership, with Starbucks citing changes in how communities live and work while shifting operations to Nashville.